Amazon is competing on price, content, and commerce. The Kindle Fire, a 7-inch Wi-Fi only device, will retail for $199—less than half the price of the iPad, less than the 7-inch Barnes & Noble Nook Color, BlackBerry Playbook, and HTC Flyer. As I predicted, Amazon is indeed drawing on all its content and commerce assets including video, music, games, as well as magazines, apps, and services—the Kindle Fire comes with a 30-day free subscription to Amazon Prime, and a pre-installed Amazon shopping app. It also features a spiffy custom-built browser, called Amazon Silk, which interfaces with EC2, Amazon’s cloud server, to optimize performance. (Meaning: it’s really fast.)